Caraustar, owned by H.I.G. Capital, announced the merger in July. It would combine the second and third largest producers of uncoated recycled paperboard used in tube and core and other products with total capacity of about 847,000 tons/yr. The new company will also produce coated recycled board, gypsum wallboard, and recycled containerboard at 13 US mills.
H.I.G. Capital did not respond for comment late on Feb. 18.
Market sources have said DOJ was investigating the merger up until early January. It was not known if the approval would require divestment of any assets. Newark Group is owned by DDJ Capital.